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For Consumer Packaged Goods Professionals

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February 23, 2004

Exposing The Myth Of The 5-Cent RFID Tag

Why RFID Tags Will Remain Costly This Decade

by Charles Homs

with David Metcalfe, Sonoko Takahashi

This is an excerpt

Executive Summary

The initial hype around the potential for adding an RFID tag to every item in a supermarket persuaded RFID manufacturers to target the retail supply chain. Retailers and CPG manufacturers bought into the idea that they could use RFID tags economically if they cost €0.05. But complex manufacturing techniques, a costly assembly process, and a lack of demand means the price of RFID tags won't drop to €0.05 in the next eight years. The Forrester model forecasts that RFID tag prices will decline, on average, only 9% year on year. To find a cheaper alternative, CPG manufacturers and retailers need to minimize tag functionality, target simple usage scenarios, or wait for a manufacturing breakthrough.

TABLE OF CONTENTS

  • RFID Tag Manufacturers And Users Have Contrasting Views
  • Reset Expectations: RFID Tag Prices Won't Tumble

WHAT IT MEANS

  • High RFID Tag Prices Will Hit Demand And Supply

ALTERNATIVE VIEW

  • Revolutionary Ways To Cut RFID Tag Manufacturing Costs
  • Supplemental Material
  • Related Research Documents

Features

Feature Forecast: Class 0, Class 1, And Class 2 RFID Tag Prices, 2004 To 2012

Feature Forecast: Class 4 RFID Tag Prices, 2004 To 2012

This is an excerpt

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RESEARCH CATEGORIES

Industry

Consumer Packaged Goods, Retail, RFID

Geography

Asia Pacific, Europe, North America